Crypto highly risky, but it also has potential to transform future of finance: DPM Heng
channelnewsasia.comSINGAPORE: Cryptocurrency assets are a "highly risky space", but it also has the potential to transform the future of finance, Deputy Prime Minister Heng Swee Keat said on Tuesday (May 31)."We must continue to adapt our rules to ensure that regulation remains facilitative of innovation, and yet addresses the key risks that crypto assets pose," said Mr Heng, speaking at the Asia Tech x Singapore 2022 Summit.He highlighted that the Monetary Authority of Singapore (MAS) has consistently warned the public against trading in cryptocurrencies amid steps to limit promotion of cryptocurrencies to the general public earlier in 2022."Many investors suffered losses and even lost their life savings in the recent meltdown of TerraUSD and Luna, which triggered knock-on effects on Bitcoin and other cryptocurrencies," he said."Retail investors especially should steer clear of cryptocurrencies.
We cannot emphasise this enough."However, Mr Heng noted that the digital asset ecosystem comprises an entire range of services beyond cryptocurrency trading, and added that Singapore remains keen to work with blockchain and digital asset players to encourage innovation, and build up trust in the sector.MAS has granted licences and in-principle approvals in the past 2 years to 11 digital payment token service providers, including stablecoin players like Paxos, crypto exchanges like Coinhako, and traditional financial institutions like DBS Vickers.Singapore will also continue to evaluate applications, and facilitate live experiments through regulatory sandboxes, to enable safe adoption in the financial sector, said Mr Heng.The financial authority has also been working with the industry on several digital asset initiatives, said Mr Heng, who
